During early trading hours on Tuesday, leading meme coin Shibainu (SHIB) briefly traded at a monthly high of $0.000020.
Although it has since fallen and is currently trading at $0.000019, SHIB is still poised to regain its highs and continue its upward trend .
Shibainu pursues new heights
As assessed on the daily chart, some of Shibainu's key technical indicators confirm the potential for a sustained rally.
Moving Average Convergence/Divergence (MACD), which tracks an asset's price trends and measures momentum, suggests that bullish sentiment toward SHIB is steadily rising.
Since July 5, SHIB's MACD line (blue) has been lying above the signal line (orange) and has been trending toward the zero line to break it. When an asset's MACD line crosses the signal line and points towards the zero line, it indicates a significant shift in market momentum from bearish to bullish.
Read more: How to Buy Shibainu (SHIB) and Everything You Need to Know
If SHIB successfully crosses the zero line, the current bullish trend will be confirmed, potentially attracting more buyers and pushing the price higher.
Additionally, figures from SHIB's Elder-Ray Index show that the uptrend is currently dominant. At press time, this indicator has a value of 0.0000036. The index has returned only positive values since July 13th.
This indicator measures the relationship between buying and selling of an asset. A positive value means that the bullish strength in the market is greater than the bearish effort.
SHIB Price Prediction: Surging Activity in Futures Markets
SHIB's price increase also led to an upward trend in the derivatives market. At press time, open futures contracts for this coin currently stand at $39 million, the highest in a month. It's up more than 40% in the last seven days.
Futures open contracts for an asset refers to the total number of outstanding futures contracts that have not been settled. A surge in this number means more traders are entering new positions. These bullish signals could potentially push asset values to new highs.
For SHIB, the price of the meme coin will recover to $0.000020 and rally. It can be traded for $0.000025.
However, if market sentiment switches from bullish to bearish , the coin price will plummet to $0.000012 .
